20 Most Valuable Healthcare Companies in the World
In this article, we will look into the 20 most valuable healthcare companies in the world. If you want to skip our detailed analysis, you can go directly to the 5 Most Valuable Healthcare Companies in the World.
Healthcare Services Industry: A Market Analysis
According to a report by Verified Market Research, the global healthcare services market was worth $10.30 trillion in 2021. The market is expected to grow at a CAGR of 8.27% and reach $21.6 trillion by 2030. The healthcare industry has grown considerably over the past few decades. The growth is characterized by technological advancement in disease detection, testing, research, and treatment. The market is expected to benefit from rising awareness about healthcare, increased profitability, rising economic growth, and a high demand from the aging population. The major trends in the healthcare services market include the adoption of digital tools, increased cross-company and cross-industry partnerships, innovative and novel drug development, a growing trend of bundled payments, and hybrid imaging techniques among others.
The market is segmented into hospitals and clinics, dental services, nursing care, laboratory services, and pharmaceutical companies including others, by type. It is expected to be dominated by the hospital segment over the forecasted period, due to hospitals being the major earning source in the industry.
Regionally, North America dominated the market and generated the maximum revenue share in 2021. Asia Pacific is expected to experience significant growth over the forecasted period. The growth is driven by increased private investment in the healthcare industry in countries like China, India, and Thailand among others.
Healthcare Market in the US
According to a report by McKinsey and Company, the market will face challenges like inflation and a shortage of workers in 2023 but is expected to rebound in 2024. The US healthcare revenue was $654 billion in 2021. The revenue is expected to grow and reach $790 billion in 2026. The fastest growing segment in the region is projected to be healthcare services and technology, with a CAGR of 10% followed by specialty pharmacy, with a CAGR of 7% over the forecasted period. The government investment segment is expected to grow, with medical advantage penetration estimated to reach 52% in 2026.
Key Players in the Industry
Some of the major companies leading the healthcare market include Eli Lilly and Company (NYSE:LLY), UnitedHealth Group Incorporated (NYSE:UNH), and Johnson & Johnson (NYSE:JNJ).
Eli Lilly and Company (NYSE:LLY) is a global leader in the healthcare industry. On November 2, Eli Lilly and Company (NYSE:LLY) reported its earnings for the fiscal third quarter. The company reported a revenue of $9.50 billion and outperformed revenue consensus by $508.16 million. The company's revenue for the quarter grew 36.84% on a year-over-year basis.
Here are some of the comments from Eli Lilly and Company's (NYSE:LLY) Q3 2023 earnings:
"Our new products and growth products combined contributed approximately 17 percentage points toward volume growth, with over 12 percentage points coming from our growth products. Last week, we announced that the FDA approved Omvoh for the treatment of moderately to severely active ulcerative colitis in adults.
This marks Lilly’s first approval in the U.S. for a type of inflammatory bowel disease. And it’s important for Lilly’s growth in its immunology portfolio. In addition to the FDA approval for Omvoh, we had several other important pipeline updates since our last earnings call. Specifically Jardiance was approved by the FDA for the treatment of adults with chronic kidney disease, at risk of progression. And we reported positive Phase 3 results from the VIVID-1 trial which evaluated the safety and efficacy of mirikizumab for the treatment of adults with moderately to severely active Crohn’s disease. In Q3, we announced that the FDA issued a Complete Response Letter for lebrikizumab based on inspection findings at a third party manufacturer. The letter stated no concerns with the clinical data package, the safety or the label.
We will continue to work with the third party manufacturer and the FDA to address the findings to make lebrikizumab available to patients as quickly as possible. In terms of business development, we once again had a very active quarter. In Q3, we completed the divestiture of the olanzapine portfolio, which will further enable us to focus on our current and new product launches. The financial impact of this transaction is reflected in the Q3 results. Additionally, within the quarter, we completed the acquisition of two clinical stage companies, adding to our Phase 2 portfolio, DICE Therapeutics and Versanis Bio as well as the acquisition of Emergence Therapeutics and Sigilon Therapeutics. We also announced that we reached an agreement to acquire POINT Biopharma, which, if approved, has the potential to expand our oncology capabilities into next generation radioligand therapies. And lastly, we distributed over a $1 billion in dividends this quarter."
UnitedHealth Group Incorporated (NYSE:UNH) is a leading healthcare and insurance company. On November 2, the company announced its partnership with the Hispanic Federation (HF), a nonprofit organization, with the mission of empowering the Latino community. The partnership is a three-year collaboration granting $3 million in funding, to support the Hispanic Federation's (HF) attempts to reduce the discrepancies around diabetes in the Latino community. Latino community reports an over 50% chance of developing type 2 diabetes over a lifetime. The grant will fund a program in Atlanta, Dallas, and Houston for Latino individuals. The program will provide related resources to promote the adoption and maintenance of healthy habits and physical activity. It will also provide individuals with primary and mental health care, health screenings, and access to healthy food. This grant is a result of the success of the company's five-year pilot program in Florida, which enabled the participants to reduce their body weight by an average of 6.8% over six months.
Johnson & Johnson (NYSE:JNJ) is a leading healthcare company, specializing in pharmaceutical and medical technology. On November 1, Johnson & Johnson's (NYSE:JNJ) subsidiary, Johnson & Johnson Innovation (JLABS), announced its collaboration with the Singapore Economic Development Board. The partnership is set to launch the Singapore QuickFire Challenge (QFC), a challenge for innovators to provide healthcare solutions. The challenge, QFC, will grant funding of $100,000 to the innovators with the best solutions. JLabs will also be helping the healthcare companies in Singapore, that are in their initial development stages. The company will support them by providing the resources and mentorship required to expand their innovative medicines, medical technologies, and healthcare solutions.
Now that we have talked about the market trends in the healthcare industry and discussed the major players, let's have a look at the 20 most valuable healthcare companies in the world.
20 Most Valuable Healthcare Companies in the World
Methodology
To rank the 20 most valuable healthcare companies in the world, we screened the companies listed under healthcare using stock screeners from Finviz and Yahoo Finance. We also researched healthcare companies by reviewing market reports. Then, we narrowed down our selection to 20 companies that are the biggest by market cap, as of November 5, and ranked them in ascending order of this metric.
20 Most Valuable Healthcare Companies in the World
20. Medtronic plc (NYSE:MDT)
Market Cap as of November 5: $96.54 billion
Medtronic plc (NYSE:MDT) is ranked among the most valuable healthcare companies in the world. Medtronic plc (NYSE:MDT) provides innovative products and services, utilizing the latest medical technology. Medtronic plc (NYSE:MDT) has headquarters and principal executive offices in Dublin, Ireland. As of November 5, Medtronic plc (NYSE:MDT) has a market cap of $96.54 billion.
Eli Lilly and Company (NYSE:LLY), UnitedHealth Group Incorporated (NYSE:UNH), and Johnson & Johnson (NYSE:JNJ) are some of the major companies leading the healthcare market.
19. Gilead Sciences, Inc. (NASDAQ:GILD)
Market Cap as of November 5: $101.66 billion
Gilead Sciences, Inc. (NASDAQ:GILD) is an American healthcare company, specializing in biopharmaceutical solutions. Gilead Sciences, Inc. (NASDAQ:GILD) is leading the market with the discovery, development, and commercialization of innovative medicines. As of November 5, Gilead Sciences, Inc. (NASDAQ:GILD) has a market cap of $101.66 billion.
18. Stryker Corporation (NYSE:SYK)
Market Cap as of November 5: $104.94 billion
Stryker Corporation (NYSE:SYK) is an American healthcare company, specializing in medical devices and equipment manufacturing. Stryker Corporation (NYSE:SYK) is leading the market with innovative orthopedics, medical, surgical, and neurotechnology solutions. As of November 5, Stryker Corporation (NYSE:SYK) has a market cap of $104.94 billion.
17. Elevance Health, Inc. (NYSE:ELV)
Market Cap as of November 5: $106.08 billion
Elevance Health, Inc. (NYSE:ELV) is a top American health insurance company leading the market with its integrated healthcare solutions. Elevance Health, Inc. (NYSE:ELV) serves more than 118 million people, at every stage providing them with medical, digital, behavioral, clinical, and complex care solutions. As of November 5, Elevance Health, Inc. (NYSE:ELV) has a market cap of $106.08 billion.
16. Bristol-Myers Squibb Company (NYSE:BMY)
Market Cap as of November 5: $107.47 billion
Bristol-Myers Squibb Company (NYSE:BMY) is ranked among the most valuable healthcare companies in the world, known for its biological and pharmaceutical research. As of November 5, Bristol-Myers Squibb Company (NYSE:BMY) boasts a market cap of $107.47 billion.
15. Sanofi (NASDAQ:SNY)
Market Cap as of November 5: $115.75 billion
Sanofi (NASDAQ:SNY) is a leading French healthcare company, headquartered in Paris. Sanofi (NASDAQ:SNY) specializes in the development and production of innovative medicines and healthcare solutions. As of November 5, Sanofi (NASDAQ:SNY) has a market cap of $115.75 billion.
14. Amgen Inc. (NASDAQ:AMGN)
Market Cap as of November 5: $144.42 billion
Amgen Inc. (NASDAQ:AMGN) is one of the most valuable healthcare companies, leading the market with innovative biotech solutions. Amgen Inc. (NASDAQ:AMGN) is a pioneer in developing biological medicines using living cells. As of November 5, Amgen Inc. (NASDAQ:AMGN) boasts a market cap of $144.42 billion.
13. Danaher Corporation (NYSE:DHR)
Market Cap as of November 5: $146.21 billion
Danaher Corporation (NYSE:DHR) is a leading manufacturer and developer of medical products, headquartered in Washington D.C. Danaher Corporation (NYSE:DHR) is ranked 13th on our list with a market cap of $146.21 billion.
12. Abbott Laboratories (NYSE:ABT)
Market Cap as of November 5: $166.59 billion
Abbott Laboratories (NYSE:ABT) is a top American healthcare company, that specializes in innovative medical devices and healthcare solutions. As of November 5, Abbott Laboratories (NYSE:ABT) has a market cap of $166.59 billion.
11. Thermo Fisher Scientific Inc. (NYSE:TMO)
Market Cap as of November 5: $175.70 billion
Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the most valuable healthcare companies, leading the market with innovative biotech solutions. Thermo Fisher Scientific Inc. (NYSE:TMO) is a global supplier of analytical instruments, biotechnology services, and specialty diagnostics. As of November 5, Thermo Fisher Scientific Inc. (NYSE:TMO) boasts a market cap of $175.70 billion.
10. Pfizer Inc. (NYSE:PFE)
Market Cap as of November 5: $176.49 billion
Pfizer Inc. (NYSE:PFE) is a leading American healthcare company, specializing in innovative pharmaceutical and biotech solutions. As of November 5, Pfizer Inc. (NYSE:PFE) has a market cap of $176.49 billion.
9. Novartis AG (NYSE:NVS)
Market Cap as of November 5: $190.66 billion
Novartis AG (NYSE:NVS) is one of the most valuable healthcare companies, leading the market with innovative pharmaceutical solutions. Novartis AG (NYSE:NVS) was founded in 1996 in Basel, Switzerland. It is a global leader in the research, development, and manufacturing of medicines. As of November 5, Novartis AG (NYSE:NVS) boasts a market cap of $190.66 billion.
8. AstraZeneca PLC (NASDAQ:AZN)
Market Cap as of November 5: $198.27 billion
AstraZeneca PLC (NASDAQ:AZN) is ranked 8th on our list of the most valuable healthcare companies in the world. The Anglo-Swedish multinational company is leading the market with its innovative biotech and pharmaceutical solutions. The company is headquartered in Cambridge, UK, and has offices all over the world. As of November 5, AstraZeneca PLC (NASDAQ:AZN) has a market cap of $198.27 billion.
7. Roche Holding AG (OTC:RHHBY)
Market Cap as of November 5: $211.87 billion
Roche Holding AG (OTC:RHHBY) is a leading Swiss healthcare company, headquartered in Basel, Switzerland. Roche Holding AG (OTC:RHHBY) specializes in pharmaceuticals and diagnostics. As of November 5, Roche Holding AG (OTC:RHHBY) has a market cap of $211.87 billion.
6. AbbVie Inc. (NYSE:ABBV)
Market Cap as of November 5: $249.61 billion
AbbVie Inc. (NYSE:ABBV) is a leading American healthcare company, headquartered in Chicago, Illinois. AbbVie Inc. (NYSE:ABBV) specializes in innovative medicines and healthcare solutions. As of November 5, AbbVie Inc. (NYSE:ABBV) has a market cap of $249.61 billion.
The healthcare market is expected to experience significant growth. Investors can increase their exposure to the market by investing in stocks including Eli Lilly and Company (NYSE:LLY), UnitedHealth Group Incorporated (NYSE:UNH), and Johnson & Johnson (NYSE:JNJ).
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Disclosure: None. 20 Most Valuable Healthcare Companies in the World is originally published on Insider Monkey.